A number of observers have been pointing to oil shale as the solution to all our energy problems. If oil shale does turn out to be the resource of the future, then our problems are only beginning.
Category Archives: energy
Responding to supply shocks
It seems pretty clear to me that a monetary contraction isn’t the appropriate policy response to a supply shock. Apparently there are those within the Federal Reserve who see things differently.
Economic effects of Rita
A lot of people are bracing for huge effects of the latest Gulf storm on energy markets. I see reasons for hoping things won’t be that bad.
Consumer confidence plunges
Yet another key leading indicator turns gloomy. How much can the stock market and the Fed shrug off?
Who cares about core inflation?
This is another one of those months when you could report pretty much any number you like to summarize the current inflation rate, and, as William Polley noted, newspapers did. At times like these, the concept of “core inflation” can be very helpful.
Gasoline demand plummets
By Monday, oil and gasoline futures prices had given up all of the gain they’d experienced since Katrina. Today we learned that U.S. gasoline demand has plummeted. Both developments were pretty surprising, but are surely related.
Energy theory of value
Perhaps no statement by economists causes physical scientists more aggravation than the claim that the economic importance of energy can be measured by its dollar share in total GDP. Here I explore some of the arguments for both sides of that claim.
Hurricane? What hurricane?
Amazingly, gasoline futures on the New York Mercantile Exchange today ended back where they were before Hurricane Katrina struck with all its fury. Retail prices will likely follow that lead. But what about the Fed?
The question about refining
Has environmental regulation been responsible for leaving the U.S. with inadequate gasoline refining capacity? The story is not as simple as some have suggested.
Gasoline taxes revisited
Kudos to Bryan Caplan of Econlog, Victor of
Dead Parrot Society, and the Governor of Georgia for proving wrong my conjecture that lowering gasoline taxes in the present environment would not result in cost savings for consumers.